What is Bridge Financing?

May 202016

Your house had been on the market for a couple of weeks and while out on a stroll in one of your favorite areas in Edmonton you see it- a new listing that would be the perfect home for you. The only problem is, you can't have enough for a down payment without selling your currently listed home first. Your dream is shattered, or is it? Bridge financing may be the solution to winning your Edmonton dream home.

What is Bridge Financing?

Just as its name would suggest, this type of loan is designed to bridge a gap, getting you through a short period of time where you need access to money quickly. With an average duration of 90 days, bridge financing is often used by Edmonton home owners who are trying to upgrade, relocate or have an extra-long closing on the sale of their current home.

Problems with Bridge Financing

Since most of the time the need for short-term financing is a shortage of cash, most financial institutions will deny your request. A mortgage broker who has access to private lenders however, understands that not having the cash for a down payment or closing on a house might simply mean your money is tied up in assets.

No Credit or Bad Credit

As long as you own property that will cover the amount of short-term financing you are looking for, your credit rating or job stability is not a critical component to securing bridge financing in Edmonton. Your BMC Mortgage & Investments brokers will evaluate your situation and if you have enough equity to secure the loan, you'll be on your way to your new home in no time.

No Money Down

This is another issue people face when trying to secure bridge financing. If financial institutions do offer such products, they often want a down payment before issuing the loan. The problem is, if you had access to that kind of money, you would not require the short-term loan to cover a cash shortage. With BMC Mortgage & Investments, you need no money up front. Your fees will be included in the loan proceeds, meaning you can access the cash you need when you need it.

For more information on bridge financing to secure your dream home in Edmonton, contact our team at BMC Mortgage & Investments. Let's get you moving and into the home you have always wanted.